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The Central Board of Indirect Taxes and Customs recently notified the Central Goods and Service Tax (Fourth Amendment) Rules, 2019 vide notification no. 31/2019 – Central Tax on 28th June 2019.

The notification is all about the inclusion of new rule 10A into the Central Goods and Service Tax Rules, 2017. The new rule is concerned about the bank account details which need to be mandatory furnished under GST.

This article describes the provisions of the newly inserted rule 10A and the result of non-compliance with the provisions.

Applicability of new Rule 10A

Provisions of rule 10A are applicable to the newly registered taxpayer who has duly received :
Registration certificate in Form GST REG-06 and
Goods and Service Tax Identification Number (GSTIN).

Obligations When rule 10A is Applicable

When the rule 10A is applicable, the taxpayer has to furnish the details of the bank account mandatorily.

Time Limit for Furnishing the Bank Account Details

The eligible taxpayer needs to furnish the bank account details in the given time-frame :

• 45 days from the date of the registration obtained.
• Due date of furnishing the GST return U/S 39 of the CGST Act.

Whichever is Earlier

Individuals who are Exempted from Applicability of Provisions of Rule 10A

Provisions of rule 10A are not applicable to some individuals. Below mentioned individuals are under no obligation to furnish the bank account details.

• Registered as per rule 16 of CGST

Individuals who are registered as per rule 16 of the Central Goods and Service Tax Rules, 2017 are the individuals who are so-moto registered by the proper officer. They are not mandatorily required to furnish the bank account details.

• Registered as per rule 12 of CGST

Individuals who are registered as per rule 12 of the Central Goods and Service Tax Rules, 2017 are the individuals (deductors) who are registered as the person responsible to deduct TDS / TCS.

Results of Non-compliance with the Provisions of Rule 10A

Vide the above-stated notification, clause (d) has been added to rule 21 of the Central Goods and Service Tax Rules, 2017. Rule 21 of CGST, 2017 deals with the revocation of registration. Clause (d) which has been newly added states that if the provisions of rule 10A are violated, the registration of such taxable person would be revoked.

Therefore if the liable taxpayer found out to be noncompliant with the provision i.e if he/she fails to furnish the bank account details within the specified time frame, then, the registration of such taxpayer would be revoked.